The Institute of Chartered Accountants of India
(Set up by an Act of Parliament)
Growth of the real estate sector in the recent past in India, indicates the importance of this sector in Indian economy. Along with fulfilling one of the basic necessities for human existence, i.e., housing, this sector has also been used as a key tool by the Indian Government in achieving an overall socio-economic growth during the last few decades. The development in the real estate market encompasses growth in both commercial and residential spheres. As there are large numbers of entities in this segment, there is intense pressure amongst the entities to stay on top in the investors’ choice list. The Institute of Chartered Accountants of India (ICAI), while realising the role of this sector in fuelling growth of Indian economy and recognising need for guidance on accounting for real estate sales, in 2006, issued Guidance Note on Recognition of Revenue by Real Estate Developers. With the fast growth of this sector, the volume and the number of transactions in this sector have also grown significantly. In the recent past, different practices followed by the various real estate developers in recognising their revenue has also been amongst the favourite headlines in the news across the country. Considering this, ICAI felt that the revision of the Guidance Note is necessary. I appreciate the initiative taken by the Accounting Standards Board in this regard. I wish to place on record my deep appreciation of CA. Manoj Fadnis, Chairman, Accounting Standards Board, and members of the Accounting Standards Board who have made invaluable contribution in the finalisation of this Guidance Note. I hope that this revised Guidance Note will be useful as well as the others concerned. New Delhi February, 2012 both to our members
CA. G. Ramaswamy President
In recent years, with the... [continues]
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